Exercise ADU662

Topics: Manufacturing, Cost, Mass production Pages: 2 (384 words) Published: April 4, 2015

Q1.
a)Explain briefly the terms given below;
i.Single Productivity Factor
ii.Partial Productivity Factor
iii.Total Factor Productivity [6 marks]

b)A small manufacturing company produces widgets at a rate of 250 units per day, with an average of 70% defect free; 30% of the defectives can be reworked. The processing cost is $32 per unit, and the rework cost is $16.60 per unit:

i.Compute the quality-productivity ratio. [3 marks] ii.Compute the quality-productivity ratio if the company's processing cost decreased to $26.40 and rework cost decreased to $15 per unit. [6 marks]

Q2.
a) A manufacturing company produces 32,000 units per month, 78% are free of defects. The percentage of defective units that can be reworked is 25%. The direct manufacturing costs for each unit are $9.50. It costs $2.74 to rework a defective unit; i. Determine the monthly yield. [3 marks]

ii. Compute the manufacturing cost per unit. [3 marks] iii. Determine the manufacturing cost per unit if the percentage of good-quality units is increased from 78% to 96%. [6 marks]

Q3.
a) The ABC Manufacturing Company produces calculators in total of 1000 units per week and 87% of the productions are good-quality units. Only 15% of the defective units can be reworked at a cost of $32. The direct cost for this production is $94 per unit.

Calculate the followings for the company:
i. Weekly yield
ii. Manufacturing cost per unit
iii. The revised manufacturing cost if the company managed to improve the percentage of good quality unit from 87% to 90%.

Q4.ABC Manufacturing Company also wants to understand the effect of quality on productivity. Therefore, you are asked to assist the company to calculate their Quality Productivity Ratio (QPR) and also provide them with some simple scenario analysis related to any changes imposed...
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